Redwood Materials, co-founded by JB Straubel, secures $1 billion in funding

Key Points

  • 💰 Redwood Materials, founded by Tesla co-founder JB Straubel, completes a $1 billion equity funding round.
  • 🔄 Series D funding will boost company’s capacity, expand domestic battery supply chain, and provide sustainable battery materials made in the US.
  • ♻️ Company focuses on collecting end-of-life batteries to refine and recover key components.
  • 🌐 Redwood has raised almost $2 billion in equity capital and secured a $2 billion loan commitment from the US Department of Energy.
  • 🏢 Funding round co-led by Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund, and T. Rowe Price Associates.
  • 🚗 Goldman Sachs sees Redwood as a potential leader in battery materials due to electrification trend.
  • 🌱 Capricorn’s Technology Impact Fund highlights Redwood’s role in clean energy technology and sustainability.

Redwood Materials, a startup focused on battery recycling and co-founded by JB Straubel, Tesla’s former CTO and current Board Member, has successfully concluded its recent equity funding round. This Series D funding round raised more than $1 billion and was jointly led by Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund, and funds advised by T. Rowe Price Associates.

The raised capital from the Series D funding will be utilized to further enhance the company’s capacity, contributing to the expansion of the domestic battery supply chain. This expansion aims to enable Redwood’s clients, including Panasonic from Tesla’s Giga Nevada facility, to procure sustainable battery materials that are produced within the United States.

Redwood remains committed to its mission of expanding the collection of end-of-life batteries, which in turn enhances the company’s capability to efficiently process and recover greater quantities of essential components. A press release from Redwood stated, “With this additional capital, we’ll continue to assemble an industry-leading technical team, ensuring top-notch execution in sustainable battery materials production.”

At present, Redwood has secured nearly $2 billion in equity capital, alongside a $2 billion loan commitment from the US Department of Energy.

Goldman Sachs Asset Management commented on Redwood’s recent funding round. Sebastien Gagnon, a Managing Director in Private Equity at Goldman Sachs Asset Management, expressed belief in Redwood’s potential as a significant player in the battery materials sector. He stated, “As the electrification megatrend continues to accelerate, building a local sustainable battery materials supply chain is more important now than ever. We believe the Redwood team is well-positioned to become a leader in the battery materials industry. We look forward to working with the company in the coming years and leveraging our firm’s global platform to support Redwood’s growth, which we believe will play an important role in the ongoing energy transition.”

Dipender Saluja, Managing Partner at Capricorn’s Technology Impact Fund, also shared insights about the funding round and Redwood’s role in battery recycling. “Having invested in electric cars and airplanes, battery technology, and power electronics for over two decades, we’ve had a front-row seat to the evolution of clean energy technology and electric mobility. Redwood Materials emerges as one of the most pivotal companies in this space. Our journey with JB, beginning with his transformative work at Tesla, feels like it’s come full circle with our investment in Redwood. Their commitment to creating a sustainable battery materials supply chain is not only an impressive continuation of that legacy but also a crucial step for our clean energy future,” said Saluja.

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